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Derailment on the Matola rail corridor results in force majeure notice
Coal of Africa Limited
Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
ISIN AU000000CZA6
JSE/ASX/AIM share code: CZA
("CoAL or the "Company" or the "Group")
ANNOUNCEMENT 28 February 2013
Derailment on the Matola rail corridor results in force majeure notice
Coal of Africa (“CoAL” or “the Company”) announces that it was advised by Transnet Freight Rail (“TFR”) of a
derailment of 10 wagons on the Maputo (“Matola”) rail corridor on 18 February 2013 that has led to all rail traffic
between Komatipoort and Maputo being suspended. Based on the current information the suspension is for a period
of at least seven (7) weeks (“the suspension period”). TFR has attempted to establish alternative routes to the Matola
Port which to date have unfortunately been unsuccessful.
Accordingly, the Company advises that its subsidiaries Limpopo Coal Company (Pty) Ltd (the holding company for the
Vele Colliery), Langcarel (Pty) Ltd (the holding company for Mooiplaats) and NuCoal Mining (Pty) Ltd (the holding
company for Woestalleen) have issued force majeure notices to their customers, contractors and other affected
stakeholders.
The Company will implement measures at all operations to mitigate the commercial and operational impact of this
force majeure. Production at Mooiplaats and Woestalleen will continue until stockpile capacity is exhausted. The
existing stockpiles at Vele are at full capacity and have resulted in the temporary suspension of production. This
suspension will preserve cash resources by reducing costs as the colliery is currently in developmental and product
testing phase. Vele Colliery’s essential services will continue and a buffer contingency plan has been initiated to
enable production to restart within 24 hours once TFR resumes operations on the Matola corridor.
In the second quarter of FY2013, the Company reported production of 1,153,486 tonnes run of mine coal of which
194,495 tonnes (16.86%) was produced by the Vele Colliery. The Company exported for sale 411,297 tonnes and in
addition sold 418,355 tonnes to the domestic (inland and Eskom) market in the same period. The Company’s take or
pay obligations will be appropriately adjusted as a result of the force majeure.
Coal of Africa will continue to provide updates on material developments as they occur.
AUTHORISED BY:
John Wallington
Chief Executive Officer
For more information contact:
David Brown Chairman Coal of Africa +27 11 575 4363
John Wallington Chief Executive Officer Coal of Africa +27 11 575 4363
Sakhile Ndlovu Investor Relations Coal of Africa +27 11 575 6858
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
Jos Simson/Emily Fenton Financial PR (United Kingdom) Tavistock +44 20 7920 3150
Chris Sim/Neil Elliot Nominated Adviser Investec Bank plc +44 20 7597 5970
Charmane Russell/James Duncan Financial PR (South Africa) Russell & Associates +27 11 880 3924 or
+27 82 372 5816
Suite 8,7 The Esplanade, Mt Pleasant, Perth WA 6153, Australia, Tel: +61 8 9316 9100, Fax: +61 8 9315 5475, Email: perth@coalofafrica.com
ZA: 2nd Floor, Gabba Building, The Campus, 57 Sloane Street, Bryanston, Johannesburg, South Africa 2021, Tel: +27 11 575 4363, Fax: +27 11 576 7484, Email: adminza@coalofafrica.co.za
Company Registration: ACN 008 905388
David H. Brown - Chairman, John N. Wallington - Chief executive officer, Professor N. A. Nevhutanda - Corporate affairs director
Non-executive directors: Peter G. Cordin, Khomotso B. Mosehla , Dave J. K. Murray, Bernard R. Pryor, Rudolph H. Torlage
Investec Bank Limited is the nominated JSE Sponsor
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL’s key projects include the Vele Colliery (coking
and thermal coal), the Greater Soutpansberg Project, including CoAL’s Makhado Project (coking coal) and the Mooiplaats and Woestalleen Collieries (both
thermal coal).
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